A LEGAL AND REGULATED INDUSTRY

The new framework for medical cannabis means considerable business opportunities for both cultivation and retail.

In Canada, various court challenges have compelled the Government of Canada to ensure there is a legal and regulated supply of medical cannabis. At present, the current legislation governing cultivation and sale is the Access to Cannabis for Medical Purposes Regulations (ACMPR). The current framework requires that companies that wish to cultivate, process and warehouse medical cannabis must obtain a licence from the federal government. Such “licensed producers” are also the only entities legally allowed to sell to Canadian consumers (mail shipments, online/phone ordering). The list of licensed producers can be found here.

New Industry Recommendations

In late 2016, the new Government led by Justin Trudeau issued their new recommendations for the commercial cultivation and sale of medical cannabis. They had created a “task force” to study and make recommendations on a new cannabis regulatory environment – for both medical and recreational. Their report recommendations are expected to be put into new legislation in mid-2017, creating a parallel system for both medical and recreational cannabis.

Compliance is the Key

The new framework for medical cannabis is expecting to open up considerable business opportunities for both cultivation and retail. Key among the new recommendations are in the allowance of retail (in-person) sales for medical cannabis, such as through pharmacies and perhaps dispensaries. The stringent quality and security requirements, however, are expected to remain, meaning that the cultivation and sale of cannabis will continue under strict requirements.

It should be noted that dispensaries (retail stores) are currently illegal and operate with great risk of criminal prosecution.
While the new legislation is expected to allow retail sales, at present it is still illegal.